Bitcoin Price Surge: New Highs on the Horizon?
Bitcoin Price Soars, Hints at New Highs
Bitcoin (BTC) experienced a significant price jump on Wednesday, climbing 3.6% to reach $109,730 – its highest point since June 12. This surge coincides with the global money supply (M2) hitting a new all-time high of over $55 trillion.
A daily candle close above $108,500 would confirm a bullish engulfing pattern, significantly increasing the probability of Bitcoin reaching new highs in the near future.
Source: Cointelegraph/TradingView
Increased Open Interest and Market Strength
The recent price surge, from $105,200 to $109,500, was accompanied by a notable increase in derivatives activity. Open interest (OI) across major futures exchanges jumped 10% (approximately $3.2 billion), indicating a substantial influx of capital and confidence in further price increases. This rise was mainly driven by long positions.
Source: Velo.chart
Despite the price and OI increases, funding rates remained stable. This suggests a balanced market sentiment and that the rally wasn't fueled by excessive leverage, potentially indicating a more sustainable uptrend.
The rally also involved a significant short squeeze, with over $196 million in short positions liquidated in the past 12 hours. This likely accelerated Bitcoin's break past key resistance levels. The elevated Coinbase Premium Index further supports the bullish narrative, suggesting strong spot buying pressure from US-based institutional and retail investors.
Is a New All-Time High Imminent?
With Bitcoin breaking out of its sideways trading range, many analysts believe a new all-time high is likely. Analyst Rekt Capital suggests a weekly close above $109,300 this Sunday could break through final resistance, potentially leading to new price discovery.
Analyst Jackis points to Bitcoin's lowest volatility levels since 2023, noting that past instances of such low volatility were followed by significant price movements within five weeks. Technical analyst Titan of Crypto highlights a bullish MACD crossover and a potential breakout from a bullish flag pattern, suggesting a move towards $137,000.
Source: X
Disclaimer: This article is for informational purposes only and does not constitute investment advice. All investment decisions involve risk.
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